China’s economy is poised for a moderate rebound in the coming years, positioning the nation as a key driver of global growth, according to the latest projections from the Organisation for Economic Co-operation and Development (OECD). The OECD’s interim economic outlook, released on Monday, highlights China’s expected growth rates of 4.7 percent in 2024 and 4.2 percent in 2025.
Despite uneven growth across different countries and regions, the global economy is demonstrating resilience. The OECD projects global GDP to increase by 2.9 percent in 2024, a 0.2 percentage point rise from its November forecast, with a slight improvement to 3 percent anticipated in 2025.
“The global economy has been remarkably resilient despite the challenges of high inflation and tighter monetary policies,” said OECD Secretary-General Mathias Cormann. He emphasized the importance of prudent monetary policies and suggested that central banks could consider reducing interest rates if inflation continues to decline.
Asia is set to continue accounting for the bulk of global growth, as it has in 2023. In the OECD’s projected growth rates, China ranks among the top three countries globally for 2024 and 2025. This outlook underscores China’s influential role in sustaining global economic momentum.
In contrast, the United States is projected to see growth rates of 2.1 percent in 2024 and 1.7 percent in 2025, buoyed by consumer spending and eased financial conditions. The euro area is expected to experience more subdued activity, with growth rates of 0.6 percent in 2024 and 1.3 percent in 2025, amid tight credit conditions and a gradual strengthening of real incomes.
Cormann highlighted the necessity for coordinated efforts to address shared global challenges. “Fiscal policy should rebuild fiscal space through stronger efforts to contain spending growth,” he stated. “In parallel, we need to work together to reinvigorate trade, improve supply chain resilience, and tackle shared challenges, in particular climate change.”
The OECD’s optimistic projections for China come as countries worldwide continue to navigate the complexities of post-pandemic recovery. China’s anticipated growth not only reflects its internal economic resilience but also signals positive implications for international markets, investors, and policymakers monitoring Asian economic trends.
Reference(s):
cgtn.com
